Urbium this morning blamed weak consumer spending trends and the hot June weather for a 1% fall in first half like-for-like sales on the year.
Like-for-likes were 2% up on 2003 figures. In London like-for-like sales were flat compared to 2004 but 5% ahead of 2003 levels.
In a trading statement Urbium said that it expected retail conditions generally to continue to be challenging for the whole of 2005. However, it expected to benefit from corporate and private function sales in the traditionally stronger second half.
The company welcomed The Takeover Panel’s decision late last month to give Regent Inns a ‘put up or shut up’ deadline of midday on 21 July to decide over a potential bid for the group.
Urbium had previously rejected a proposed 820 pence per share offer for the group, which would have valued Urbium at £85m, or £108m including debt, with a cash alternative at 30% of the value of the offer, equivalent to 246 pence per share.
Urbium said: "The speculation as to Regent's intention since its unsolicited highly conditional indicative proposal in early June has been disruptive for the group and the directors of Urbium look forward to an early resolution."
The group added that Steve Richards, the new chief executive was "firmly in control of the business" and was moving "quickly and decisively" towards delivering Urbium's three-year strategic plan for growth.
The company’s strategy includes increasing the run rate profitability of the existing businesses by 25% over 2004 levels and building on the Tiger Tiger brand.
The group has identified food, events and private functions, procurement, margin management and customer service as having potential to improve profitability. So far investment has been in additional personnel in sales and marketing, training, procurement and external resources.
Urbium said that, although the investment was costly in the short term, the future benefits were expected to be "substantial".
At Tiger Tiger the Leeds and Glasgow sites have been remodelled with the updated brand template, which will also be used for the next new Tiger Tiger opening, in Cardiff in October, and the planned cycle of Tiger Tiger refurbishments in the future.
The Leeds and Glasgow sites also saw the launch of The Grill, the company’s new food concept, which will be rolled out to most of the restaurants during 2005.
